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Solve the following:

If total capital invested by company is Rs 5,00,000 and net profit before interest, tax and dividend is Rs 1,60,000, what is ROI?

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Net Profit before Interest, Tax and Dividend = Rs. 160,000 (Given) Total Capital Invested (Net Capital Employed) = Rs. 50,000(Given) Return on Investment (ROI) = Net Profit before Interest, Tax and Dividend/Total Capital Invested (Net Capital Employed) x 100

= 160,000/500,000×100

= 32 %

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